Gold's Reversal Of Fortune Is About To Hit Hard (Technical Analysis)

2025-04-25 09:00:00 ET

Summary

• Gold has surged significantly in the past 15 months, outperforming the S&P 500. But, can the outperformance be sustained?
• Recent parabolic spikes in gold futures portend a potential sharp reversal. The smoke is clearly seen.
• Gold futures remain in a long-term uptrend, but sharp fear-driven surges aren't sustainable.
• Investors who bought into gold before the FOMO spike should consider taking at least some positions off.
• I explain why the time for dip buyers looking to capitalize isn't timely yet. Patience is very much needed right now.

Can Gold Really Sustain Its Recent Gains?

When I last penned my gold sector update in January 2024, I highlighted that the asset class is on the verge of a “major breakthrough.” And it indeed broke through with such finesse that GLD delivered more than 60% return over the past 15 months or so, as compared to the S&P 500’s ( SPX ) ( SP500 ) 15% upside....

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